Deepak Jasani, head of retail research at HDFC Securities, shared his views on the fundamentals of the market in an interview to CNBC-TV18. He also spoke about specific stocks and sectors which are worth investing in.
Post the Kashmir issue resolution, the government has now focused its attention on the economy and the market, said Jasani. “There is a lot of hope that whatever needs to be done in terms of kickstarting the economic growth or in terms of bottoming out the market and stabilizing the market will be done by the government. The meetings yesterday, today, and couple of days from now will be a step in that direction,” he said.
“A lot will depend on how the US-China trade issue pans out. If it worsens, and we see the impact of that on the global growth and growth across the globe, then probably despite whatever the government does we may not see such a sharp rise in our economic growth parameters,” Jasani added.
Talking about specific stocks, he said: “It is necessary that the investor should have done his portfolio review, asset allocation review at intervals. If he has done that then probably a few months back he must have raised some cash, because unless he has cash, he will not be able to deploy that.
“Having done that he will now be able to deploy money in a staggered manner – that is what we recommend over the next four to six months in pockets like cement, select consumer space, select banking and NBFC [non-banking financial company] space. These are the three apparent sectors where he could start building up or stagger his investments over the next four to six months.”
On the banking and NBFC sector, Jasani said: “Retail has been the driver of credit growth for a lot of banks and a lot of NBFCs. We have seen over the last few months that growth slowing down whether it is due to affordability, lack of income growth, etc. that we will have to check, but in case the retail advances growth slows down, then probably the high valuation that these banks and NBFCs get, should temporarily come down at least till we see the economy stabilizing and incomes generally increasing across the economy.”
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